As is customary with the start of every tax year there are various financial changes we small business owners must be aware of. And, the HR and Employment Law world is no different.
Levels of various statutory payments typically change at this time of year in line with the beginning of the new financial year in April.
We have set out the key changes for you below.
Employment Tribunal Awards and Statutory Redundancy Pay
Hopefully you won’t find yourself needing to pay out compensation to a former employee for unfair dismissal, but if you do, the maximum award that could be payable is going up slightly from 6th April 2017, but it will only be relevant for higher paid employees. Slight increases have also been made to the maximum levels of statutory redundancy pay.
If a Tribunal decides that one of your employees has been unfairly dismissed they will make an award of compensation made up of two elements – a Basic Award fixed sum based on a statutory formula and a Compensatory Award designed to compensate the employee for losses arising from losing their job.
For dismissals with a termination date of 6th April 2017 or later, the following increases in maximum awards now apply:
- £489 is the maximum award for a week’s pay (used for calculating Basic Award for Unfair Dismissal or Statutory Redundancy Pay)
- £14,760 is the maximum Total Basic Award for Unfair Dismissal or Total Statutory Redundancy Pay.
- £80,541 (or one year’s gross salary if lower) is the maximum Total Compensatory Award for Unfair Dismissal.
Family Related Pay Statutory Increases
As of this month (April 2017) the rates of Statutory Maternity, Paternity, Adoption and Shared Parental Leave Pay have increased. The rate for all of them is now £140.98 per week or 90% of the average weekly salary if lower.
Statutory Sick pay has also increased to £89.35 per week.
If you have any questions about these rate increases or you think you could benefit from an HR system that automatically reminds you and updates pay when changes happen, please get in touch with us on 0333 444 0165 or email firstname.lastname@example.org